Estate agency window in Barcelona. Credit: Manuel Milan / Shutterstock
Picturing the Spanish dream? Sunshine, tapas, a slower pace of life? You’ve probably hit the rent-or-buy dilemma that almost every expat faces. With rising Spanish rents and a Spanish property market that’s buzzing with wealthy international buyers, it can feel genuinely confusing to know which is the best choice.
Renting in Spain: Fairly flexible, but no longer the “cheap and easy” option
For years, renting in Spain was simple and cheap. Less stress, less paperwork and less commitment – perfect for anyone dipping their toes into Spanish life.
But the landscape has changed in recent years. According to Spanish Property Insight, renting became more expensive than buying in 94 per cent of Spain’s most populous areas in 2025, citing an Idealista analysis.
Idealista’s affordability report shows renters now spend 36 per cent of their income on rent, compared with 25 per cent for a mortgage.
So, if you’re feeling shocked while browsing rentals online, it’s not just you, the numbers back you up.
Renting in Spain is still best if:
- You’re unsure how long you’ll stay
- You want freedom to move or change cities
- A 20–30 per cent deposit for a mortgage is unrealistic.
But be prepared for:
- Rising rents in most major cities
- Competition (good listings go fast)
- Very limited long-term options in coastal areas (most places require you to vacate during July and August).
Buying in Spain can be surprisingly achievable
Despite high costs across Europe, buying in Spain is not the exclusive, “someday-if-I-win-the-lottery” dream many imagine. In fact, for many expats, buying is sometimes the more affordable route.
Recent data show that foreign buyers continue to play a major role in Spain’s property market, accounting for roughly 15–20 per cent of all home purchases.
And the truth is:
In many Spanish cities, your monthly mortgage may be lower than a comparable rental. That stability means a lot if you’re deciding to build a life here.
Buying in Spain tends to be a good idea if:
- You’re planning to stay 5+ years
- You can cover the 20% deposit* + 10–13% taxes and fees
- You’d consider renting the property out later.
*In some cases, an ICO-backed mortgage could give you 90% LTV.
When buying a property in Spain, you’re building equity, not paying someone else’s mortgage. Property values remain resilient in popular regions, and in many cases, you have the option to generate rental income – depending on whether you can get a tourist licence.
But do consider:
- High upfront costs, especially in coastal areas
- Selling a property in Spain isn’t always fast
- Maintenance and community fees can add up
Where you live in Spain will shape your experiences of renting and buying
Choosing between renting and buying often comes down to location, and Spain’s regions tell very different stories.
Big cities: Madrid, Barcelona, Valencia
If you’ve been searching here, you already know:
- Rent is high and rising
- Buying offers strong long-term value
- Resale markets are generally liquid.
Coastal favourites: Costa del Sol, Costa Blanca, Balearics, Canaries
Loved by expats for the lifestyle – and increasingly for investment:
- Steady international demand
- Rising prices (but still good value compared to northern Europe)
- Strong rental potential in many areas.
Inland towns and rural Spain
A slower pace and often unbeatable value:
- Affordable purchase prices
- Limited rental supply
- Ideal for remote workers, older families and retirees.
Whether you rent or buy, Spain remains one of Europe’s most appealing places to build a life and 2026 could be an ideal moment to plant those roots or try the lifestyle on for size.
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